THE AUTOMATING AGILITY Architecture •©Amit Mitra THE PROBLEM • IN A GLOBAL INFORMATION ECONOMY, BUSINESS THRIVES ON CHANGE – – – – INTENSE COMPETITION, GLOBAL SUPPLY CHAINS INCREASING REGULATION NEW OPPORTUNITIES, THREATS EXPLODING.
Download ReportTranscript THE AUTOMATING AGILITY Architecture •©Amit Mitra THE PROBLEM • IN A GLOBAL INFORMATION ECONOMY, BUSINESS THRIVES ON CHANGE – – – – INTENSE COMPETITION, GLOBAL SUPPLY CHAINS INCREASING REGULATION NEW OPPORTUNITIES, THREATS EXPLODING.
Slide 1
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 2
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 3
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
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C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 4
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 5
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 6
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 7
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 8
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 9
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 10
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 11
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 12
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 13
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 14
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 15
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 16
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 17
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 18
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 19
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 20
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 21
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 22
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 23
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 24
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 25
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 26
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 27
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 28
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 29
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 30
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 31
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 32
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 33
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 34
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 35
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 36
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 37
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 38
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 39
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 40
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 41
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 42
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 43
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 44
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 45
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 46
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 47
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 48
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 49
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 50
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 51
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 52
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 53
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 54
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 55
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 56
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 57
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 58
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 59
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 60
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 61
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 62
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 63
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 64
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 65
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 66
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 67
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 68
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 69
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 70
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 71
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 72
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 73
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 74
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 75
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 76
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 77
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 78
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 79
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 80
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 81
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 82
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 83
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 84
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 85
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 86
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 87
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 88
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 89
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 90
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 91
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 92
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 93
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 94
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 95
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 96
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 97
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 98
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 99
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 100
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 101
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 102
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 103
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 104
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 105
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 106
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 2
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 3
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 4
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 5
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 6
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 7
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 8
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 9
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 10
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 11
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 12
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 13
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 14
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 15
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 16
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 17
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 18
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 19
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 20
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 21
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 22
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 23
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 24
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 25
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 26
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 27
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 28
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 29
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 30
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 31
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 32
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 33
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 34
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 35
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 36
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 37
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 38
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 39
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 40
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 41
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 42
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 43
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 44
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 45
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 46
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 47
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 48
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 49
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 50
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 51
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 52
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 53
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 54
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 55
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 56
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 57
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 58
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 59
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 60
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 61
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 62
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 63
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 64
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 65
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 66
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 67
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 68
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 69
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 70
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 71
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 72
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 73
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 74
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 75
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 76
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 77
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 78
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 79
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 80
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 81
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 82
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 83
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 84
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 85
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 86
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 87
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 88
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 89
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 90
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 91
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 92
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 93
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 94
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 95
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 96
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 97
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 98
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 99
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 100
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 101
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 102
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 103
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 104
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
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Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 105
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
•
•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra
Slide 106
THE AUTOMATING AGILITY
Architecture
•©Amit Mitra
THE PROBLEM
• IN A GLOBAL INFORMATION ECONOMY, BUSINESS
THRIVES ON CHANGE
–
–
–
–
INTENSE COMPETITION, GLOBAL SUPPLY CHAINS
INCREASING REGULATION
NEW OPPORTUNITIES, THREATS
EXPLODING KNOWLEDGE BASE, RAPID INNOVATION
• SYSTEMS
– OBSTACLE TO CHANGE
– MULTIPLICITY OF IMPACT
– COST
• LOST TIME = MISSED OPPORTUNITY
•©Amit Mitra
STRATEGIES FOR SUCCESS
LOW COST PROVIDER
PRODUCT- SERVICE
INNOVATION
LOW COST AND CUSTOMER SERVICE WILL NOT SUFFICE!
•©Amit Mitra
Become the ‘Implementor of Business Transformation’
through focused entry points with innovation and thought
leadership
DESIRED IMPACT
Strategic
Develop and control a strategy to deliver customer
and shareholder value
Strategy
•Consulting Services
•I/T Software Products
Information
Technology
•©Amit Mitra
Performance Improvement
People and
Processes
Make the business more effective in meeting the
demands of its customers: innovative products,
lower cost, better quality and reduced time
Enabling Technologies
Ensure that the most appropriate technologies are
applied to the business systems to allow them to
support the creation of customer and shareholder
value
OBJECTIVES
• Be the ‘Implementer of Business Transformation’ through
focused entry points
• Achieve high quality of I/T products & Services at low cost
• Lead Change and innovation
?
Process?
Cheap
Labor?
•©Amit Mitra
?
HOW?
Hire talented people?
?
Leverage
Knowledge?
IT EVOLUTION
Components
Machine Assembler
Functional
Data
Hardware
3GL
Objects SOA
Code
Code
Decomposition Models
BPM
1950
•©Amit Mitra
1960
1970
1980
1990
2000
Build business components to facilitate
• Agile business processes
• Speedy business processes
• Power in the marketplace
• Compress
Systems
Development
Timelines
• Use fewer
resources
Speed
•©Amit Mitra
Agility
Deliver World Class
Business Systems
Components to
customers’ in support
of their need for
speed, agility and
power, in a dynamic
business environment,
constantly pressured
by change and
innovation
Power
MAIN THEME
• Process Modeling Framework
MY BACKGROUND
•
Practitioner
–
•
•
•
•
•
•
R&D in Process Improvement, IT Strategy and Enterprise Architecture
Chief Methodologist – AIG
Director of Architecture – NYNEX
Manager Information Systems Planning, NYNEX subsidiary
Manager, Architecture and e-commerce KPMG
Black Belt – Six Sigma
Visiting Faculty member, University of Arizona
•©Amit Mitra
ORGANIZATION OF TODAY’S LESSON
1.
CONCEPT AND SCOPE
2.
PROCESS MODELING FRAMEWORK
•©Amit Mitra
CONCEPT AND SCOPE
•©Amit Mitra
“Consider that an enterprise is a thinking entity…many of these
thoughts exist as business rules” - Barbara von Halle
CAPE tools and Value
Chains start here.
Business
Space
Business
Domain
Specification
Reusable patterns of
business knowledge,
business semantics,
operations, tactics,
strategy
•©Amit Mitra
Reusable
Requirements
Generation
Shared
Patterns of
Business &
real World
Knowledge
System
Design
What
How
Solution
Space
Requirements
Knowledge starts here.
CASE tools and
Information Systems
delivery start here.
Architecture of Knowledge
BUSINESS
BUSINESS
RULES
INFORMATION
LOGISTICS
BUSINESS
PROCESS
AUTOMATION
INTERFACE RULES
(HUMAN & AUTOMATION)
TECHNOLOGY
PLATFORM
OPERATION
•©Amit Mitra
TECHNOLOGY RULES
Rule Maintenance
Business Opportunity
or
Environmental Change
Key business values derived from business process engineering
Executive
Management
Business Unit & Operations
Management
Functional Management
Department Management
Market Intraand
organizational
Industry Coordination,
Responsi Communication
-veness and Alignment
MOST
BUSINESS
VALUE ADD
Product & User Level User Level Delivery
Product
Adaptability Functional Consistency
Service
and Service
Suitability
Level
Level
Functional
Adaptability
Suitability
LEAST
BUSINESS
DECREASING IMPACT ON BUSINESS
VALUE ADD
Programmer’s View
System Architect’s View
IT Strategist’s View
•©Amit Mitra
Chief Developer’s View
Programmer’s View
Strategic View
System Architect’s View
Chief Developer’s View
COMPONENT ENGINEERING
COMPONENT ENGINEERING
REQUIRED FOCUS
HISTORICAL FOCUS
Applic
-ation
PresenLIMITEDData
Miss
VisGo
StratService
Net- Data
Physical
TRADITIONAL
STANDARDS
HAVE
HAD
BUSINESS
RELEVANCE
Process
TransSession
-ion ion -als Levels egies
-tation
port work Link Components
Data
BUSINESS KNOWLEDGE
VALUESADDED
INFORMATION TECHNOLOGY KNOWLEDGE
DECREASING IMPACT ON BUSINESS
Component
technology has
focussed on
technology
knowledge, not
high value business
knowledge
•©Amit Mitra
SUPPLY CHAIN
CORPORATE
RESELLERS
(SUPPLIERS)
PRODUCTION
OF PRODUCTS
& SERVICES
DISTRIBUTORS
SHIPPERS
RETAILER
SUPPORT &
HOSTING
ON DEMAND
BUSINESS
FABRIC
INSURERS & REINSURERS
FINANCERS
END USERS
NET MARKET
ANALYST
PUBLISHERS
VALUE ADDED
RESELLERS
ENABLED
BY WEB
SERVICES
© Amit
Mitra
•©Amit
Mitra
Need For Enterprise Model
Our Approach to patterns of reusable business knowledge:
Combine industry knowledge with solution components.
Business Problem
Solutions
Industry Knowledge
•
•
•
•
•
Financial Services
Manufacturing
Retail
Distribution
etc..
Solutions
Components
• Products/Services
• Core Methods &
Techniques
• Support Center /
Infrastructure
Competencies
•©Amit Mitra
The 80-20 rule of inventory management
• If we attempted to find every rule and business meaning in even a small business, there would
be only one outcome – Analysis Paralysis
• There are too many rules to inventory and common patterns are often lost in this tangled web
–Luckily, a few universal components connect the business of the enterprise
–And are therefore the critical rules, reused most often
–How can we find them?
H I T E C T U
R
A
?
?
R
C
E
?
T
S
H
E
E
L
U
F
R
E
W
D
M
•©Amit Mitra
O
E
B U S IN E S S R U L E S
S
T
C
O M
M O
N
L
Y
R
E
U
S
However..
• Competitive advantage does NOT flow
from standardization
• It flows from differentiation …and
• Standardization and differentiation are not
in conflict. They complement each other..,
•©Amit Mitra
Standardization and
differentiation are mutually
complementary
RISK
(Abstract and hard to conceive)
(Easier to conceive)
•©Amit Mitra
Standards – Current State
BPDM: Late 2006
(not integrated with SBVR)
NOT ON RADAR?
SCOR, CPFR, ARIS, etc.
Need recognized
•©Amit Mitra
METAMODEL OF
BUSINESS RULES
METAMODEL OF
BUSINESS
PROCESS
CROSS-INDUSTRY
BUSINESS
KNOWLEDFE
-INDUSTRY BUSINESS KNOWLEDGE
METAMODEL OF
KNOWLEDGE
SBVR: Sep 2005
METAMODEL
OF UPPER
ONTOLOGY
Measurement
& Reasoning
NOT ON RADAR
CPFR
PLAN
M ANUFACTURER
O W N ED PRO C ESSES
FO R EC A ST
D ev elo p
B u sin ess
R E P L E N IS H
P la n S o u rcin g
& P ro d u ctio n
M ake
P ro d u ct
Id en tify
O rd er
F o reca st
E x cep tio n s
D ev elo p
F ro n t-E n d
A g reem en t
D IS T R IB U T O R
O W N ED PRO C ESSES
C O N SU M ER
O W N ED PR O C ESS
•©Amit Mitra
D ev elo p
B u sin ess
C o lla b o rate
& R eso lv e
E x cep tio n s
X
JO IN T L Y O W N E D
PR O C ESSES
C rea te
C rea te
J o in t
S a les
B u sin ess
F o reca st
P la n
C rea te
O rd er
F o reca st
M u tu a lly
E x clu siv e
E ith erT rigg er
(T rigg er ev en t
d eg ree= 1)
(N o E x cep tio n s)
Id en tify
S a les
F o reca st
E x cep tio n s
F ill
O rd er
& S h ip
C rea te
O rd er
D eliv er
C o lla b o rate
& R eso lv e
E x cep tio n s
R eceiv e
R eta il
C o n su m er
P u rch a se
& U se
ARIS
C U STO M ER
P la ce
O rd er
A ccep t
Item
C h eck
O rd er
E N T E R P R IS E
P la n
M a n u fa ctu rin g
P la ce
O rd er
•©Amit Mitra
A ccep t
Funds
S h ip
Item
Pay
S u p p lier
P ro cess
O rd er
S U P P L IE R
M ake
Item
Pay
A ccep t
Funds
SCOR
METALEVEL: Processes exist
SUPPLIER
CUSTOMER
GENERIC PROCESS
Subtype of
IDENTIFY, PRIORITIZE
& AGGREGATE
REQUIREMENTS
LEVEL 1:
The generic
SCOR
Process
Subtype of
PLAN
SUPPLY CHAIN
(COMPOSITION)
BALANCE RESOURCES
WITH REQUIREMENTS
ESTABLISH
PLAN
SOURCE
MAKE
Subtype of
(DERIVED)
PLAN INTEGRATED
SUPPLY CHAIN
PLAN SOURCE
(Work Product:
Sourcing Plan)
PLAN MAKE
(Work Product:
Production Plan)
PLAN DELIVERY
(Work Product:
Delivery Plan)
ENABLE
Partition
of
Partition of
SOURCE
PURCHASED
PRODUCT
Partition of
DISCRETE
PROCESS
SOURCE MAKE
TO ORDER PRODUCT
Partition of
SOURCE ENGINEER
TO ORDER PRODUCT
LEVEL 2:
MAKE
TO STOCK
MAKE
TO ORDER
Product Specific
SCOR
Configurations
(Configure to Order)
ENGINEER
TO ORDER
(Build to Order)
SOURCE
LEVEL 3:
DELIVER
IDENTIFY, PRIORITIZE
& AGGREGATE
RESOURCES
Partition of
•©Amit Mitra
(COMPOSITION)
Include only when sourcing of
Engineered to order Product
Common to all sourcing
SUBTYPES
•Deliver to Value Added
Reseller (VAR)
•Deliver to distributor
•Deliver to direct sales
•Deliver to retailer
•Deliver to catalog sales
•Deliver to intermediate
manufacturing supply (Work
in progress)
•Deliver to field service
•Deliver to internal delivery
•Deliver to returns delivery
SCOR
SOURCE
LEVEL 3:
• Subprocesses
• Resources
• Work
Products
Include only when sourcing of
Engineered to order Product
Identify Sources Finalize Suppliers,
of Supply
Negotiate
Schedule
Product
Delivery
Common to all sourcing
Receive
Product
Verify
Product
Transfer
Product
Authorize
Supplier
Payment
MAKE
Aggregated into
SUBPROCESSES
•Manage Rules
•Manage/Assess Performance
•Manage Data
•Manage Inventory
•Manage Capital Assets
•Manage movement and
routing
•Manage Configuration
•Manage Regulations &
Compliance
ENABLE
Partition of
Include only when making
Engineered to order Product
Finalize
Engineering
Common to making all products
Schedule
Manufacturing
Activities
Issue
Make &
Materials
Test
Release
Product
Partition of
Release To
Deliver
Stage
Product
DELIVER
Multitudes of permutations of subprocesses
deliver products made to stock, configured from
stocked components, or engineered to order
ENABLE PLAN
ENABLE SOURCE
ENABLE DELIVER
• (Include) Align with
• (Include) Manage
• (Include) Manage
Financial Plan
supplier agreements
Customer Returns
(Note: Enable “Make” does not add subprocesses - it is a polymorphic manifestation of enable)
•©Amit Mitra
Pack
Partition of
PROCESS MATURITY
DIMENSIONS
• Best Practices maturity and evolution
• Scope evolution
•©Amit Mitra
Best Practices evolution
Characteristics
sAdhoc processes
s“Cowboy” approach
- No rules &
discipline
- Cost of quality is
high
sMay endorse methods but
not monitored
sMay use tools, but they are
applied informally to
ad-hoc processes
Level 1
(Initial)
Unpredictable, poorly
controlled processes
Characteristics
Characteristics
Characteristics
Characteristics
sManagement discipline in place
sConsistent organizational methodology sData on best practices quantified
sFocus on proactive best
- Managed by Software Process
-Used to plan & manage
practice improvement
sProject tracking & oversight in place
- Meets schedules & commitments
Engineering Group (SEPG)
projects
to prevent (not just
-Customized for each project
eliminate) incidence of
within acceptable variance
sFocus on quantitative
(standard processes can be
measurement of causal
root causes of defects
sConsensus on methods & tools but not
following a documented process
referred to & improved)
relationships
- Process Change
- Problems are identified, fixed & sFocus on process improvement to
management & Process
sQuality Assurance in place
-Focus on product quality, schedule,
tracked
eliminate root causes of
quality criteria
cost
defects
optimization
sIntegrated Software Management
- Methodology is consistently
sComponent/Software configuration
sPilot innovative ideas &
management in place
followed
technologies to
-Common software components
improve best practices
sRequirements based work products (interim
& final), but not standard across
centrally managed & reused by
and measurement,
projects
projects
analysis & deployment
- Requirements & design
sSuccess through good project management
techniques
configuration management in
-Planned experiments
place
on best practices
Level 2
Level 3
Level 4
Level 5
(Repeatable)
(Defined)
(Managed)
(Optimizing)
Can consistently repeat
Best Practices standardized
Quantitative standards
Focus on continuous
previously mastered tasks
for Organization
& controls in place
innovation & Process Improvement
Problems
sInformal estimating & tracking
-Underestimated budgets &
schedules
sWeak/no change control
-Major impact of small
changes
sNo fault or fix tracking
sNo commitment reviews
-Decision are political
-No objective assessment of
capabilities & performance
sSuccess depends on individual
developers
•©Amit Mitra
Problems
Problems
Problems
sInsufficient or mis-timed
sWeak/no use of quantitative data on best practices sWeak/no preventive maintenance
training
for planning, estimation or quality
of best practices
assurance:
sWeak/no definition of testing
sWeak/No routine process for
-Cycle times & resource utilization in the
continuous improvement of
sNo fault data/metrics from
earlier projects to assist
work breakdown structure
best practice & preventing
planning & delivery
-Defect/fix densities & cycle times
causes of defects from
- Completeness, complexity & consistency
occurring
sNobody tasked to identify,
develop or deploy best
metrics
practices
-Reliability, performance & maintainability
metrics
-etc.
sNo trends, projections & variance tracking of the
data above
sNo causal analysis of defects related to the process
From Level 3 and
up, the firm will
optimize payback
from standards
At Level 3, Business, Information, Business Services, Application Services, Technical Infrastructure, Data
Access, Security, Environment, Migration & Change Management will all be in alignment
Federated Model: the business should be responsible for data content, business process, the security of physical and
information assets including data on business users’ desktops and mobile platforms, whereas IT will be responsible
for metadata and the security of physical and information assets in datacenters
OWNED BY THE BUSINESS
Existing I/T
Environment
(includes.
Application
Portfolio)
New and
Emerging
Technologies
Application Services
Business Services
Information
Business
Principles
Authentication/Authorization
rules, strategies, and
resources used for
enforcement.
Enterprise Architecture
guidelines for data roll up, BI, access
DBMS, ETL tools, Hardware, System
Software, Network & Storage Strategy
Architecture Models
Principles
Standards
Architecture Models
Evaluation criteria
Standards
Evaluation
criteria
Processes
Management
Processes
•©Amit Mitra
(including Network)
I/T Strategy and
Vision
Environmental
Security
Data Access
Technical Infrastructure
Development Environment,
Operations Management,
Technical Administration and
Control, Planning,
Configuration Management,
Software Distribution, Asset
Inventory Management,
Capacity Planning and
Modeling, Productivity
Measurements and Metrics,
Disaster Recovery.
Adaptation
& Migration
Architecture Drivers
Business
Vision &
Strategic
Goals.
OWNED BY IT
(including System Management)
Physical and information assets on users’ facilities,
desktops and’ mobile platforms
Ownershi
p
Middleware & user Interface strategy
Business mission-specific Apps & executables.
Metadata
Business processes, Organization & roles; CSFs,
DATA, measures and metrics
Scope evolution
•As the business becomes more automated and sophisticated, complexity will increases
exponentially with the size and diversity of business processes, products and technology
platforms. Integration should proceed with caution, and in step with process maturity.
GLOBAL LEVEL ARCHITECTURE
Defines the joint goals of multiple organizations
Key Issue: Impact of technology that crosses enterprise boundaries
ENTERPRISE LEVEL ARCHITECTURE
Defines policies and services for providing cost effective software and data access
Key Issue: Coordination of system level decisions to allow graceful transitions
IT Strategist’s
View
SYSTEM LEVEL ARCHITECTURE
System Architect’s
View
APPLICATION LEVEL
ARCHITECTURE
MACRO LEVEL
ARCHITECTURE
Chief Developer’s
View
•©Amit Mitra
MICRO LEVEL
ARCHITECTURE
Programmer’s
View
BUILD
LEVEL
Defines software development infrastructure to maximize interoperability
Key Issue: Managing complexity of the system; planning for future changes
Implements a specific set of functionality in a way that satisfies quantitative requirements
Key Issue: Mitigating performance overhead
Maximizes component reconfigurability and reuse
Key Issue: Development of design patterns involving one or more micro-architectures
Development of small designs used to address issues whose interrelationships with other components is
well defined
Key Issue: Isolation of components to handle future system changes
Defines primitive functionality to address application requirements
Key Issue: Definition and management of components
Business Process Redesign
Framework
•©Amit Mitra
Mission
Determine the quality of a solution by using customer centric, metric driven
techniques to articulate the solution with externally visible, implementable
elements
Mission Element
Customer centric, metric driven
techniques…Voice of the Customer
Service Element
• Identify the customer
• Articulate the customer’s CSFs
• Quality defined by attributes linked to customer’s
CSFs
• Metrics Definition and Prioritization linked to
attributes
• Service Orientation
• Partitioning Strategies
• Legacy Migration and Change Strategy
...approach for breaking it into
implementable elements...
• Specification of defects and anomalies
(functional and performance) based on
relevance, reliability, accuracy, timeliness
• Associated with processes and services
• Prioritized by value, impact of failure, ease of
implementation and management commitment
...specify their externally visible
behavior...
30
•©Amit Mitra
Voice of the Customer
Financial
Stakeholders
CSF: How are we performing
financially?
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are we adaptable?
CSF: Are they optimal?
Goals
Features
Goals
Metrics
31
•©Amit Mitra
Features
Metrics
Metrics
QUALITY WILL BE ASSESSED IN TERMS OF
Appeal
PRODUCT &
SERVICE
QUALITY
Process
Support
Resilience
Functionality
• Functionality:
Cost
Schedule
–Perform specified tasks
• Resilience:
–Adapt to changing requirements
• Appeal:
–Satisfy both quantitative and qualitative performance expectations
• Support
–Be available
–Provide assistance
• Right level of assistance in obtaining the requisite functionality and performance,
• Resolve issues and problems from users’ perspectives
• Schedule
–The quicker, the better
–With less
•©Amit Mitra
Wish lists and unarticulated requirements matter
Kano’s Model of quality
Quality, from the customer’s perspective,
is realized by meeting requirements
Validly: The right requirement,
Precisely/Accurately: Done right
Reliably: Met consistently
On time : Within Schedule
Within Budget: Cost
Requirements = Functionality, Resilience,
Appeal, Schedule and Cost
–
–
–
Not meeting articulated “must have” needs
will lead to dissatisfied customers
Meeting only articulated “must have”
needs will not lead to satisfied customers
(Kano)
Going beyond CSFs will lead to
delighted customers (Kano’s model)
Very
Satisfied
(+)
Neutral
(-)
Value, from the customer’s perspective, is
Very
commensurate with the quality of the
Dissatisfied
solution, and includes
–
–
–
•©Amit Mitra
Short and long term return/risk
Qualitative and quantitative returns & risks
Strategic vs. Opportunistic gains/losses
(and risks)
34
“Delighters” or “wish list”
(may or may not be articulated)
Customer Satisfaction
–
–
–
–
–
0%
Requirements Satisfied
100%
Must Haves
Requirements
Functionality
Appeal
Schedule
Return
Resilience
Cost
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
35
community of knowledge
Contents
•©Amit Mitra
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II DESIGN FUTURE STATE
•
4.3 Phase III IMPLEMENT
•
4.4 Phase IV EVALUATE
•
4.5 The BPR Team
•
4.6 Examples of Work products
THE FUNDAMENTAL PROCESS OF PROCESS IMPROVEMENT
Awaken
Monitor
& Evaluate
Envision
The
Fundamental
Process
Focus
Plan
Build
37
•©Amit Mitra
Progressive clarification of the problem
State-of-mind
I have a clear
idea of
where I’m going
Vision
Envision
Focus
I know what
I will change
Design
High
Level
I can see it
working
Design
Details
Design
Build
Realize
I can measure,
see, feel the
benefits / results
Implement
Control
&
Enhance
Evolve
Program phases
38
•©Amit Mitra
There can be numerous projects or
“entry points”into a program
(Examples)
(Examples)
New process
Definition
New Org.
Structure
Build
Focus
IT Assessment
The
Fundamental
Process
Envision
Strategic Plan
Awaken
Monitor
& Evaluate
Certification
New Performance
Measurement
•©Amit Mitra
39
Integration of Project and Program Management
(Appendix 1)
Key Inputs
Market Analysis
Competitive Analysis
Strategic Goals
Benefit Measures
Program
Management
Model
Strategy
Key Outputs
• Mission
Statement
• Strategic
Objectives
• Quantified
Benefit Targets
• Timetables
Key Inputs
Scope
Boundaries
Team
Cost
Approach
Project
Management
Model
Key Outputs
•©Amit Mitra
Mission Statement
Strategic Objectives
Benefit Targets
Timetables
Risk
Cost
Objectives
Benefits
Scope
Implementation
Plan
Business Case
Mobilization
• Scope
• Implementation
Costs and Plan
• Schedule
• Responsibilities
• Business Case
Updated Benefits Model
Performance Measures
Cost Estimates
Timetable Estimates
Risk Indicators
Implementation
• Project Plans
• Control and Reporting
• Target Benefit Model
Risk
Quality
Change Control
Work Breakdown Structure
Resources
Roles & Responsibilities
Budget
Review
Time Estimates
Adjust
Contingency Plans
Redefine
Project
Definition
• Project
Management
Plan
Project
Plan
•
•
•
•
•
Detail Plan
Schedule
Resources
Deliverables
Costs
Operations
•Project Review and
Close
•Benefit Realization
Project Expectations
Changes
Actual vs Estimates
Customer Satisfaction
Project
Management
• Project
Control and
Reporting
Project
Close
• Project
Review and
Close
40
Seven dimensions of process improvement
1
2
7
ORGANIZATION/PEOPLE
INFORMATION
TECHNOLOGY
GOALS, WANTS & NEEDS
PHYSICAL
INFRASTRUCTURE
PROCESS CAPABILITIES & CHARACTERISTICS
PHYSICAL CAPABILITIES/CHARACTERISTICS & SUPPORT NEEDS
SOURCE DOCUMENTS AND DATA CHARACTERISTICS
6
3
BUSINESS
STRATEGY
CONVERSION / CUTOVER REQUIREMENTS
TRAINING AND DOCUMENTATION NEEDS
PRODUCT / SERVICE
OFFERING
CONVERSION, MIGRATION AND INTERIM NEEDS
POLICIES,
LEGISLATION,
REGULATION
•©Amit Mitra
CROSS-FUNCTIONAL
WORKFLOW
5
4
ITERATIVE
TECHNIQUES
INCLUDE
FACILITATED
WORKSHOPS
–To leverage
organizational
knowledge
Business
BusinessProblem
Problem
By forcing the
confluence of
business knowledge
Business
BusinessKnowledge
Knowledge
with IT solution
components and • Customer Knowledge
corporate
• Financial Knowledge
competencies
• Process Knowledge
In time boxed work•
shops that rapidly •
home in on
business solutions
•©Amit Mitra
Solutions
Solutions
Regulatory, Legal and
Policy Constraints
Business Learning and
Innovation
Competencies
Competencies
Solutions
Solutions
Components
Components
• IT applications
• Core Methods
& Techniques
(BPI, IT)
• Support /
Infrastructure
Complex change requires consensus. Coercion will not lead to lasting
change. The firm must stay within “the zone of reason” to achieve its end
state vision.
Style of operation
CHAOS
Collaborative
Directive
“PRISON
CAMP”
Coercive
Fine tuning
•©Amit Mitra
Performance
Improvement
Transformational
Change
Degree of
change
Amit Mitra 973-462-6783 4/7/2004 2:38 PM
Communication and change management processes will be integral to
implementing and stabilizing improved processes
Level of
Support
Commitment
Change Model
Commitment
Employee contributions to
change acknowledged
Sense of influence and a
challenge to contribute
felt by staff
Level of employee participation in
redesign understood
Involvement
Business Vision & Focus Areas clarified
Steps of the change known by staff
Need for change communicated
Information
Target groups selected
•©Amit Mitra
Time
SE
FU
UNC ZZY VIS
ION
LEA
R
VAG GOALS
UE P
LAN
P
RE OOR
SU
LT
S
COM
M
GO ON
LS
STRU CLEA
CTU AR
RE
VICIOUS
CYCLE OF
FAILURE
ICT
CO
L
BO LARA
TIO
N
RE INC
MO Y M REA
IST SED
IET
RU
ANX
ST
L
NF
CO
•©Amit Mitra
ON
M S
M AL
CO GO VED
I
CE
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
W
ON
ISI LS
V
R OA
EA
CL AR G LAN
E
CL AR P
E
CL
R
PE
C
PR ONF
ES IDE
S
IM CONTURE NCE
PR IN FO ,
OV UA R
EM L
EN
T
FE
S- Y
TI
SA TOR S
C LT
FA ESU
R
SYNERGISTIC
CYCLE OF
SUCCESS
S
CE
EN TUAL
ER
FF MU
DI IRE NING
R
SP
IN LEA
D
SE AC MOR
A
CE
E
PT E
CR UST
AN
N
I TR
CE
DI
F
EN FER
AS ENC
TH
RE ES
AT
MANAGING CULTURAL DIVERSITY
RE
MO SURE E
G
ES
PR HAN
C
TO
DIFFERENCES IN
Business Philosophy
Business Practices
Culture
Communication of Change
•
Develop and implement a communication strategy for
– Overall vision
– Implementation strategy
– Communication to all those who will be affected
•
●
–
–
–
–
●
–
–
In order to demonstrate committed sponsorship, ensure employee
involvement, and minimize resistance
Key Activities:
Determine style of communication
Select media for communication
Assign responsibility for execution
Provide feedback mechanism
Key Deliverables:
Ongoing communication program
Newsletters, briefings, team meetings, etc.
Flow of Management Commitment and Communication
Envision
Build
Vision
shared by
senior
management
Approval to
Implement
Focus
Focus on
high value
improvements
Implement
Design
High
Level
Solution
operational;
Result
Measured
against
expectations
Management
Approval of
concept
Design
Detail
Approval to
Build
Continuous Improvement Program
47
•©Amit Mitra
Flow of Deliverables
for Envision Phase
Int. Org.
Overview
To
Critical Success
Factors
Holistic
Business
Model
Mobilization
Plan
Confirmed
Business
Vision
Vision
shared by
senior
management
Business
Position
Readiness
for Change
Assessment
Sponsorship
Role Map
To Communications Plan
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
48
Flow of Deliverables
for Focus Phase
Focus
Areas
Requirements
of Process
Customers
Quick
Wins
CSF’s
KPI
Shared Values
&
Guiding Principles
Stretch
Targets
“As Is”
Tech.
Ass’m’t
“As Is”
Process
Ass’m’t
“As Is”
HR Ass’m’t
Communication
Plan
Priority
Opport.
Focus on
high value
improvements
Design
Charters
To
Best Practices
Comparison
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
49
Flow of Deliverables
for Design High Level Phase
“To Be”
Validation
Best Practices
Comparison
“To Be”
Meas. Dash.
“To Be”
Process
Model
“To Be”
HR
Model
Transition
HR Strategy
“To Be”
Tech.
Model
To Detailed
Process Description
Migration
Plan
Management
Approval of
concept
HW/SW
Selection
IT System
Requirements
Business
Case
To Detailed
Process Description
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
50
Flow of Deliverables
for Design Detail Phase
Org’l
Structure
Portrait
of Desired
Behaviors
To Facility/Layout
Construction &
New/Revised Policies
Policy/
Regulatory
Changes
Workforce
Numbers
and Cost
Delineation
of Roles and
Respon’s
Detailed
Process
Description
Physical
Infrastructure
Requirements
Approval to
Build
Competency
Needs
Assessment
Technical
Specs
Committed
Project Results/
Budgets
To Implementation
Pilots
To Custom SW Development
and Package SW Modifications
Process
Information Technology
Change Management
•©Amit Mitra
Human Resource
51
Flow of Deliverables
for Build Phase
Facility Layout/
Construction
Learning Strategy
& Materials
Package
Software
Modification
New/
Revised
Policies
Proc/Users
Manual
Position/
Comp.
Profiles
Implementation
Pilots
Custom
Software
Development
Approval to
Implement
Accept.
Test
IT Ops
Guide
Measure.
System
To
Business
Solution
Roll-out
Performance Support
& Recognition
Process
Data Migration
•©Amit Mitra
Implementation
Plans
Information Technology
IT
Testing
Change Management
Human Resource
52
Flow of Deliverables
for Implement Phase
Business
Solution
Roll-out
Learning
Programs
Support
Infrastructure
Solution
operational;
Result
Measured
against
expectations
Performance
Feedback
To
Continuous
Improvement
Program
Process
Information Technology
Change Management
Human Resource
53
•©Amit Mitra
Deliverables
Fundamental Process
Design
High Level
Design
Details
Awaken
Envision
Focus
Case for Change
Mobilization Plan
Communication
Plan
Best Practice
Comparisons
Detailed Process
Descriptions
Internal Organ.
Overview
Crit. Succ.Factors
“To-Be”Process
Model
Technical Specs.
Business Position
Key Perf. Indic.
Holistic Business
Model
Readiness for
Change
Assessment
Package SW Mods.
Custom SW Dev.
Stretch Targets
“To-Be” Technol.
Model
Shared Values and
Guiding Principles
“To-Be” Human
Resource Model
Focus Area
“To-Be” Measure.
Dashboard
Sponsorship Role Requirements of
Process Customers
Map
Business Vision
Build
“As-Is” Process
Assessment
“As-Is” Technol.
Assessment
“As-Is” Human
Resource Assess.
Quick Wins
Priority Opport.
Design Charters
“To-Be”
Validation
IT System
Requirements
HW Selection/
SW Selection
(Package SW)
Business Case
Migration HR
Strategy
Migration Plan
Implem. Pilots
Organization
Structure
IT Operat. Guide
Process/User Man.
Delineation of
Roles/Resp.
IT Testing
Workforce
Numbers & Cost
Portrait of
Desired Behaviors
Competency
Needs Assessm.
Physical Infrastructure Req.
Policy /
Regulation
Changes
Committed
Project Results
and Budgets
Implement
Business
Solution Rollout
Enhance
Continuous
Improvement
Program
Performance
Feedback
Learning
Programs
Support
Infrastructure
Postion/Comp.
Profiles
Learning Strat.
and Materials
Measure. System
Facility Layout
Construction
New/Revised Pol.
Data Migration
Perf. Supp./Recogn.
Accept. Test
Process, Facilities, etc.
Information
Technology
Change Management
Human Resources
Implem. Plans
Business
Functions
Responsible for
deliverables
54
•©Amit Mitra
Process Improvement & Redesign
Business Process Redesign Framework
People & skill set representing
to carry out functional process
and develop tools:
Direct and manage process projects
including process documentation and
analysis
BPR
Track and control process projects
Change Mgmt
Develop and deploy process
innovation methodology:
TQM, CI, Six Sigma
Selective subject – matter
experts in all business
functional processes
including sales, marketing,
product mgmt,
inventory/revenue mgmt,,
customer lifecycle, and
hospitality mgmt
BP Reengineering
BP Redesign
Continuous improvement
Define and deploy performance
measurements and metrics
Implement best practices and
lessons learned
Develop and deploy standard BPR
tools
Train and promote career path
Perform internal consulting
Core
Capabilities
Deliverables
samples/templates
Strategic/Business Planning
Activity/Process Modeling &
analysis
Organizational governance with
business mgmt
Data Modeling
Activity Based Costing
Steering Committee
Economic Analysis
X-Functional Representation
Best Business Practices
Subject matter experts
Measurement
Gap analysis
Benchmarking
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
What is a Business Process?
An organization exists to provide value to its customers
SUPPLIERS
MARKET/
CUSTOMERS
Organization
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Organization is structured around functional departments
Operations
HR
I/T
Finance
Acquire Customer
Fulfill Orders
Obtain Orders
•©Amit Mitra
Customer
Service
Sale
A Process is a relationship
A process is a series of related activities that takes uses resources to
add value to a business by producing an work products for a
customer.
Input
Process
Output
Redesign processes; not functions, departments, geographies, or
tasks
Processes are different from functions
Not Service
Oriented
•©Amit Mitra
Can be Service
Oriented
Function
Process
Examples
Sales
Purchase
Obtain Orders
Procure Material
Who Does it
A group of people doing
similar activities
Measurement
Internal
A group of people
working toward a
common goal
Customer
Nature
Fragmented
Integrated
• Is the product a polymorphism of a goal?
BAKE COOKIE
• Is a process a polymorphism of a product?
Dough
EXTERNAL
EVENT
REQUEST
FRESH
COOKIES
Subtype of
BAKE COOKIE
Make
cookie
Dough
#
EVENT
COMPOSITION
PURPOSE
OF
BAKE COOKIE
SERVICE ORIENTATION
RESOURCE
A.
Cookie
Cookie
Bake
dough
Arrange
dough glob
on cookie
sheet
WORK
PRODUCT
Unload
cookie
(Change scope?)
PROCESS
COMPOSITION
(Process Map)
Water
REQUEST
FRESH
COOKIES
Cookie Sheet
(Fresh)
Cookie Sheet
(in use)
TRANSITIVE
TRIAD
Make cookie
Dough
Arrange dough
glob on cookie
sheet
Cookie Sheet
(in use)
Bake dough
Unload cookie
(IRREDUCIBLE
FACT - NO SPLITTING !)
Cookie
Dough Mix
Dough
•©Amit Mitra
WASTE OR BY
PRODUCT
Cookie Sheet
(used)
Dough globs
Cookie batch
There are four different types of processes
Enabling Process
Supplier
Value - Creating
Process
Assets
Customer
Assets-Creating
Process
Governing Process
Environment
Value-creating (e.g Customer Service processes)
•Processes that convert inputs into outputs of greater value to external customers ( sometimes
called core processes)
Enabling (e.g. Legal processes)
•Processes that support one or more other processes, typically by supplying indirect inputs
Asset-creating (e.g. Plant & Facilities Maintenance processes)
•Processes that create and manage infrastructure assets that are used by and leverage valuecreating processes
Governing (e.g. Strategic Planning processes)
•Processes that direct or tune other processes
•©Amit Mitra
PRODUCT OF A PROCESS
• Work Product: The purpose of the process
• By Product: A lower priority goal being achieved as a part of the process
• Waste product: An item of no relevance or worse (undesirable item) produced as
a part of achieving the purpose of the process
• An arbitrary classification determined by how the enterprise defines its purpose.
• Process engineering starts when the enterprise starts defining how it will achieve
its overall purpose
– Processes are polymorphisms of this purpose
STRUCTURE AND GOVERNANCE
•
B USINESS PURPOSE
The resources and work products of a governing process
of
Build a loware
costproperties
replacement network
•Th e cost of the com position i s cons trained to be les s than
Threat: governed processes
cur rent netw ork cost by an unknown am ount
· Competit ion in local markets
• A governing process is a polymorphism of a high order
•The Buil d pattern
process w ill replace (change the st ate o f) the current
Weaknesses:
· H igh cost struct ure.
RNANCE network
• Governing processes may be governed GOVE
by governing
processes, which may in turn
· Littl e experience is devel oping partnerships/ alliances t o leverage the marketplace.
be governed by other governing processesPROCESS
and so on
Strengths:
BUILD
NET WORK
FOR SETT ING
· (Telecom municat ions) In fras tructure development co mpet encies and experience
C O M PO S I T I ON
OB
JECTIVES
· Establis hed infrast ructure i n traditi onal markets.
· A bility to attract hi gh profil e partners.
WO RK PROD UCT O F GOVERNANCE PROCESS
O pportunities:
• Build= Process for realizing goal, linked to
61
·•©Amit
Entry into
long di stance services markets
• Network = Goal (Work Product of Build)
Mitra
Process Characteristics
•Processes work towards achieving organizational goals
•Processes may have owners but are independent of organization structure
– RAWCF Dimensions of ownership
Process is comprised of sub-processes and activities
Manage Customer Relationship
Process
Sub process
Sub-processes
Step/activity/task
© Amit Mitra
Contact
Quote
Develop Quote
Define Requirements
Sell
Produce quote
Define Pricing and Terms
Processes are building blocks of value chains
Value Chain
• Strategic planning &
mgmt
• Market analysis
• New markets and
product strategy
• Business planning
• Business dev. &
strategic partnership
Strategic Intent/
Opportunity
Identification &
Development
• Product dev. &
positioning
• Campaign mgmt
• Database
marketing
• Customer profiling
• Channel oppor. &
mgmt
Creative
Product
Design/
Modeling
• Advertising &
mailing
• Points operations
• Member / Affiliate
marketing
• Business
development
• Revenue mgmt
• Regional
•
sales/services op.
• Sales strategy and •
proposal generation •
• Opp./contact mgmt
• Affiliate marketing •
• B2B partnership dev.
•
Call center
operation
Quality assurance
• operations
VC training and
workforce mgmt • services
Facility planning & • mgmt
mgmt
Telecom
Sales
Marketing
channels
Customer
Service
Finance (accounting, financial planning, reporting, forecasting)
Human Resources (Benefits, compensation, recruitment, payroll, HRIS, etc.)
Legal & Other Services
Information Technology
© Amit Mitra
Supply
Chain
Partners
Contents
•
1. Business Process Engineering at RCI
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Process Management aligns goals and initiatives across processes
Purpose
Process Management – aligns goals and initiatives across enterprise’s processes
Establishes process targets, priorities and performance measurements
Focuses investment and aligns I/T infrastructure to process operation
Provides a forum for communication and sharing the best practices
Leverages enterprise-wide strengths while recognizing unique capabilities and style
Performance Management: Make cross-functional value creation “visible.”
Business
“System”
MARKET/
CUSTOMERS
Leadership: Establish both functional and cross-functional responsibility within senior management.
Skills / Competencies: Design jobs so workers can function 'horizontally," acquiring skills from and/or
teaming with upstream and downstream functions.
Data Management: Enable cross-functional information flow, measurement.
Structure: For each core process, one manager must have cross-functional accountability and
corresponding authority to make changes in process execution, not just “influence.”
SUPPLIERS
Service Management: Focus on customer, coordination and innovation
INPUTS:
OUTPUTS:
Labor
Materials
Capital
OTHER
Products/
Services
Process
Management
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
P r o p o sed N et w o r k C o n f ig u r atio n
o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d d ress B o o k an d T o D o L ist
C lien t Scan n in g
So ftware
L o tu s N o tes C lien t So ftware: E-M ail, C alen d arin g , A d dCress
o o k an
lien tBScan
n indgT o D o L ist
So ftware
C lien t Scan n in g
So ftware
Scan n er
A d m in istratio n
Scan n er
m inen
istratio
n
M an A
agdem
t
F in an cial
C lien t Scan n in g
So ftware
Scan n er
N o vell Server
F in an cial
AM
d an
m in
agistratio
em en tn
N o vell Server
F in an cial
M an ag em en t
N o vell Server
Scan n er
D eskto p F A Xin g
A d m in istratio n
F in an cial
M an ag em en t
D eskto p F A Xin g
N o vell Server
D eskto p F A Xin g
D eskto p F A Xin g
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
Stan d A lo n e F A Xes
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
•©Amit Mitra
M o d em
Po o l
M odem
M odem
In tellig en t
F A X B o ard s
In tellig en t
F A X B o ard s
M o d em
Po o l
M o d em
Po o l
M odem
Choosing an Improvement Approach
•
Process Performance: How well are the processes being performed
•
Process Importance: How critical is the process for our business
•
Opportunity to Improve: How easy is the process to be modified
•
Appetite for change: How enthusiastic are the stake holders?
• Business situation and readiness for
change will drive options for improving
performance
• Process Performance
• Process Importance
High
High
Need for
Change/
Improvement
Business
innovation
repositioning,
Business
Process
Redesign
Key Strength=
Opportunity for
Advertise
High
Improvement
Importance
TQM, other
Expense
focused/
management,
incremental/crossother tactical/functional
functional
techniques
techniques
productivity
improvement,
Less Significant
Less Significant
Strength=Cap
Weakness=
Investment
and
Watch for Trends
monitor
High
Low
Existing Opportunity to Improve
•©Amit Mitra
Highest
High
Low
High Performance
Engineering may involve a wide range of initiatives from
functional improvement to the wholesale rethinking of the
entire business enterprise .
TACTICAL
IMPROVEMENT
STRATEGIC
TRANSFORMATION
• Departmental / functional
orientation
• Cross functional
participation (including
customers)
• Corporate wide and
extended enterprise
orientation
• Focus on reducing
unnecessary tasks
and streamlining
work-flow
• Focus on redesigning
work-flow, technology,
and people components
of processes
• Focus on re-defining
the business mission
and vision
• 3 - 6 month duration
• 6 - 12 month duration
• Incremental improvement
in productivity
• Order of magnitude
improvement in process
performance
OPERATIONAL
IMPROVEMENT
•©Amit Mitra
• 1 - 3 year duration
• Dramatic change in
- products
- services
- channels
- markets
Choosing an approach to business improvement
Characteri
stics
TQM
… each flavor has a different potential.
Process Improvement
Transformation
Drivers
Continuous improvement
philosophy
Process improvement goals process
owner leadership
Executive Sponsor/Vision
Motivation for change Mandate for
change
Objectives
Continuous improvement in
quality of output, cycle time &
customer Satisfaction
Incremental improvement in process
effectiveness & efficiency
Step level change in results
creating competitive advantages.
Scope
Primarily functionally focused
within context of overall
enterprise quality efforts.
Enterprise process or sub-process
with associated I/T
Cross-process initiatives Multidimensional ; work flows I/T,
policies, organization
Skill
Broadly deployed training in
customer focus, defect
elimination, cycle time reduction
Process Teams trained in process
mapping analysis and simplification
techniques
Core teams trained in creativity
and breakthrough design
techniques.
Benefits/Re
sults
Steady absolute improvement in
Quality; Rate may lag customer
expectation and competition
Incremental improvements in
productivity , cycle time, cost,
defects, customer satisfaction.
Step level improvement in
business result; leap-frog
competition , new business
Limitation
No mandate for bold action .
Allow “business as usual ” and
“program du jour “ attitude
Focused on work flows and I/T;
Policy and organization not involved
;current process tuned.
Limited only by vision, leadership
and affinity of enterprise to
change
Manageme
nt System
Quality “goals” deployed through
functions, quality review and
annual assessments
Process owners & process teams;
improvement objectives crossenterprise sharing reviews
Highest executive leadership ;
initiative/ process owners ; core
re-engineering team.
•©Amit Mitra
Frequent Scenarios
Resource
Driven
Package
Driven
THE
WALL
Vision Driven
TECHNOLOGY
•Solution
constrained by
resources
•Client decision to
limit time, budget,
people
•Client size limits
ability to invest
•Client culture
imposes limits
•©Amit Mitra
Solution constrained
by build /
implementation
ORGANIZATION
choices
Technology
selections limit
CULTURE
process design
Reliance on COTS
SAP, Baan, Oracle,
Peoplesoft
Reposition
Turnaround
Solution unconstrained
“Out-of-box” objectives
Focus on the customer
and the business itself
Full BPI
implementation
•Some projects will flow from programs
•Others will be ad-hoc opportunistic, or low hanging fruit independent of programs
•Depending on the level of maturity of program management processes, consider:
• Only user’s appetite for change and the degree of technical complexity/risk when prioritizing change
or
•Business strategy, and impact
Classify projects into three classes:
Quick Hits
Opportunistic, and
Long term strategic
Each will use a different development strategy
“Strategic”
Business Impact
Program
High
Impact
Program
High
Program
Program
Program
Low
Impact
Program
Discard“Waste”
Program
“Low
Hanging
Fruit”
Project
Low
“Long term
Strategic”
Program
Project
“Quick Hits”
Project
Project
Program
Program
“Opportunistic”
“Opportunistic”
Low commitment to High commitment to
Change
Change
Organizational Commitment
•©Amit Mitra
Business Impact
Defer
Discard“Waste”
Degree of Difficulty
High
3.5 Do all process improvement initiatives follow same methodology?
All process improvement steps follow many common steps such as collect data, analyze, measure/monitor and
correct improve. However, different processes will use differing methodology.
Define
Collect
Data
Correct
&
Improve
Typical
Process
Measure
&
Monitor
Six Sigma
Analyze
&
Report
Analyze
Business Process Design/Redesign
•Performance Monitoring
•Continuous Improvement
•Brainstorm
•Design new business
•Define enabling technology
•Visualize
Evaluate
Implement
Design
Document
Scope
•©Amit Mitra
Test and refine Propose
Project recommendation
Commit
Analyze current environment
• Customer needs
• process
• Technology
Finalize scope and approach
•Motivation/Issue
•Business strategy and vision
•Commitment, Resource
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I DOCUMENT CURRENT STATE
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Management Framework
Critical Success Factors
Well defined Process Management System
Decision Making through data,information analysis
Empowered employees willing to identify problems and work together to improve results
Vision And
Business
Objectives
Processes
IT Infrastructure
• Enhance system interface and
integration
• Improve connectivity
• Limit manual activities
• Eliminate redundant systems
• Achieve higher scalability
•©Amit Mitra
• Enhance automation of processing activities
• Improve efficiency through cost and time
reductions
• Achieve higher quality through lower error
rates
• Eliminate of redundancies and non-value
added activities
• Enhance straight-through-processing
Organization
• Improve efficiency through
consolidation of same products
and similar functions
• Achieve clear differentiation of
roles and responsibilities
• Focus on Key Performance
Indicators (KPIs)
The Process of Business Process Redesign
The Business Process Reengineering activities are mainly performed by the BPR team, which is supported by subteams for the completion of certain tasks. Task Force validation and approvals are required throughout the BPR
process
Illustrative
Business Process Redesign Process
7. Validate improvement
opportunities and approve
quick hits
Task Force
11. Validate and
approve vision,
business objectives
and end state
1. Identify
required subteam resources
2. Set workplan
and kick-off subteams
6. Prioritize
redesign
improvements
and quick hits
Sub-Teams
•©Amit Mitra
3. Document
current state:
-Process,
-Organization,
-IT,
-Cost drivers,
-Other data
22. Approve
implementation plans
and project resources,
milestones and
deliverables
18. Develop final
list of projects
12. Conduct
gap analysis
BPR Team
19. Approve projects
and/or seek senior
management approval,
where required
13. Determine projects
required to bridge the
gap between current
and end state
8. Design
vision and
set business
objectives
17. Develop project
specifications and
business cases
20. Design
detailed
implementation
plans and identify
required resources
23. Allocate
responsibilities to
project
implementation team
members
21. Define
deliverables
and set
milestones
24. Establish
project tracking
mechanisms
16. Prioritize projects
15. Analyze projects:
- Implementation cost
- Ongoing costs/ benefits
10. Execute
quick hits
5. Determine
quick-hits
4. Finalize
redesign
improvements
14. Provide
required data for
project analysis
9. Design end state
-Process,
-Organization
-IT
25. Execute
projects
Business Process Reengineering Approach, Phases and Deliverables
A four phase approach to Business Process Redesign that examines processes, organization and IT infrastructure
is recommended
Illustrative
Business Process Redesign Overview(1)
Phase 1
Phase 2
Phase 3
Phase 4
Document Current
State & Finalize
Redesign
Improvements
Design End State
Implement Projects
Evaluate
Processes
Organization
IT Infrastructure
Deliverables
• Current environment
documentation
• Finalized redesign
improvements
•
•
•
•
•
Vision
Business objectives
End state design
Gap analysis
Business cases
• Project list
• Impl. work plans
• Progress rpt/tracking
mechanisms
• Org goals
• Process Goals
• Technology Goals
Notes: (1) Change and risk management activities are performed throughout the Business Process Reengineering program
•©Amit Mitra
Enterprise Model
•Before we can design processes, we must identify them
•Therefore, our objective is to identify and model an organization’s business
processes. This works best at the Strategic Business Unit Level (SBU)
•Once the processes have been identified, we can:
•Create a process model of the business
•Define and describe each process
•Depict them graphically
•Map their interdependence
•Decompose them into sub-processes
Why do we build an Enterprise Model?
It’s an articulation of the organization’s strategic intent
It tells the story of how the company faces its markets
It provides a non-traditional perspective that will stimulate new ideas
It provides an enterprise context for integration
It tells us what we do, not how we do it
It’s a description of what the business is all about
It helps us to choose our targets for reengineering
•©Amit Mitra
Contents
•
1. Business Process Engineering - What it is & Why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
4.1 Phase I – DOCUMENT CURRENT STATE
?
1. Analyze organization
structure
Minimize errors/rework
Remove delays
Eliminate non-value-added activity
Combine/re-order tasks
Move work
Align staffing with workload
4. Develop improvement
strategies and action plan
•©Amit Mitra
2. Identify departmental/
functional ACTIVITIES,
workload volumes and
current performance
3. Map cross-functional
PROCESSES, and assess
current performance
Im p o rta n ce
H
C u rre n t p e rfo rm a n ce
L
M
H
L
5. Rank opportunities based on
importance, ease of
implementation, other
Prepare
for
DESIGN
Phase
Illustrative
Plan Project and Document Current State -Plan
Developing an accurate understanding of the current state is crucial in order to identify and recommend
viable improvement opportunities
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To begin the project properly by establishing the project infrastructure, building a project plan and
executing the kickoff meeting
Activities
•
•
•
•
•
•
•
•
•
•
•
•
Form delivery team
Develop detailed project plan
Knowledge Transfer
Internal Kickoff
External Kickoff
Assign project roles
Confirm responsibilities of all organizations
Establish T&L logistics for team
Office Space preparation
Secure agreement on look and feel of deliverables
Identify points of contact, champions and stakeholders
Initiate project on dashboard
Work Products
• Project Schedule
• Kickoff Materials
• Project Plan
Tools / Techniques: Kickoff Meetings, Joint Project Planning, Project Management Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Requirements
Get a preliminary understanding of the requirements
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Current State
Evaluate
Current State
Improvements
Objective: To prepare for current state definition by clarifying the vision, business requirements and priorities and
gathering existing documentation
Activities
• Define priorities by understanding the
•
•
•
•
•
•
corporate goals and vision
Review or create business requirements
Develop interview questions, templates, and
interviewees
Finalize team roster
Engage with other program members
(integrator, package vendor, etc.)
Gather existing documentation
Investigate systems
Work Products
• Interview Templates
• Interview Schedule
• Team Roster
Tools / Techniques: Interview templates, Project Management templates
•©Amit Mitra
Quality is derived from the Voice of the Customer
Shareholder Value
Financial
Stakeholders
CSF: How are we performing
financially?
Compliance Quality
Goals
Features
Regulators
FOCUS OF ALL VALUE
Metrics
Customers
Goals
CSF: Are we compliant?
CSF: Are they delighted?
Features
Goals
Features
Metrics
Goals
Features
Metrics
Customer
Value
Metrics
Learning &
Knowledge
Business Process
Owner
CSF: Are they optimal?
Goals
Features
Metrics
Features
Metrics
All requirements and quality drivers must focus on creating value for the business
–
–
•©Amit Mitra
Goals
Inovation/adaptation
Quality
Process Quality
CSF: Are we adaptable?
Value for the customer
Value for the shareholder
–
Other stakeholders’ needs are enablers of these goals
• Regulators, Process owners, innovators and the
81
community of knowledge
Illustrative
Plan and Document Current State –Current State
“As Is” Study
Plan
Design End State
Identify Requirements
Implement
Evaluate
Current State
Current State
Improvements
Objective: To capture the existing business process and identify opportunities for tactical improvements
•
•
•
•
•
•
•
Activities
Interviews
Workshops
Review existing documentation
Identify Key Pain Areas
Identify Business Issues
Cross Operation Analysis (Level 0)
Develop Current State Document
• Processes to task level
• Systems
• Data
• Functional owners
• Stakeholder review and updates
• Comparative analysis current state practices
Work Products
• Enterprise Model
• Process level Flows
• Sub Process Flows
Tools / Techniques: Interviewing, Facilitated Workshops, Interview Templates,
Baseline Process RSAs, Visio, Igrafx, Project Management Tools & Templates
•©Amit Mitra
Illustrative
Plan and Document Current State -Improvements
“As Is” Study
Design End State
Identify Requirements
Plan
Implement
Current State
Evaluate
Current State
Improvements
Objective: To provide short term relief by designing and documenting short term, tactical improvements to
the current business process
Activities
•
•
•
•
•
Identify best practices
Evaluate gaps for priority
Identify short term needs
Implement quick hits
Provide input to training activities
Work Products
• Enhanced current state document
• Quick Hits
• Entry Points
Tools / Techniques: Baseline Services
templates/patterns,causal analysis, Project Management
Tools and Templates, Visio
•©Amit Mitra
Contents
•
1. Business Process Engineering – What it is and why we need it
•
2. Business Process Engineering - Basics
•
3. Why Redesign – Building a Case for Change
•
4. Framework
•
4.1 Phase I “PLAN/DOCUMENT CURRENT STATE
•
4.2 Phase II “DESIGN”
•
4.3 Phase III “IMPLEMENT”
•
4.4 Phase IV “EVALUATE”
•
4.5 BPR Team
•
4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Design End State
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: To migrate the client organization towards operational excellence through the design and
documentation of an optimized future state business process
Activities
• Map the business requirements and strategies
•
•
•
•
•
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•
•
•
•
•
to the systems / operational infrastructure
Identify all process inputs and outputs
Walk through work steps
Define process owners
Define Customer / Supplier relationships
Define timeframe ranges for tasks
Evaluate against best practice
Create performance measurements
Create standard operating procedures
Create and define manual processes where
system deficiencies exist
Review Level 2 flows against business and
application / system requirements
Execute Quickhits
Work Products
• Updated Level Process Flows
• Activity Flows
• M&Ps
Tools / Techniques: Interviews, workshops, conference rooms pilots, Baseline Process, Visio,
•©Amit Mitra
Guiding Principles of Process Design
• Process Focus Replaces Business Unit Focus
• Integrate Business Unit expertise and capabilities in support of larger business goals,
strategies and objectives
• Processes maximize an organization’s value added
• Eliminate non-value added activities (redundancies and manual effort) and non-value
added operating expenses
• Improve productivity (do more with less)
• Apply performance measures that are tied to results, not activities
• Improved EBITDA performance is a by-product of a successful process solution
• Reduce operating cost and Improve revenue generating capabilities
• Eliminate “down time”
• Processes are goal oriented, not task oriented
• Expedite service, increase accuracy, improve data integrity
• Process designs must empower the customers, employees, and stakeholders
• Ensure flexibility and responsiveness to customer(s)
• Support audit and management controls
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Implement
“As Is” Study
Design Vision
Design End State
Set Business Objectives
Implement
Evaluate
Design
Execute QuickKits
Objective: Develop implementation plans for agreed upon opportunities and launch impl teams
Activities
•
•
•
•
Design Implementation Workplans
Identify resources
Set key milestones
Allocate Resources to Impl team
Work Products
• Implementation Work Plan
• Implementation resource list
• Milestone and deliverable list
Tools / Techniques: Project plans, tracking mechanisms, communication plans
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Illustrative
Evaluate
“As Is” Study
Design End State
Implement
Evaluate
Objective: To provide stakeholders with the tools and files necessary to review and maintain the process on
an ongoing basis
Activities
• Training
• Approach
• Techniques
• Documentation Templates
• Roles
• Provide source files for all documentation
• Review interview templates
• Provide hands on tools training
Work Products
•
•
•
•
Training
Source Files
Customer Satisfaction Survey
History of process performance
characteristics and metrics
(configuration, settings, etc.)
Tools / Techniques: Customer Satisfaction Survey, Training, Process performance history and
metrics
•©Amit Mitra
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Business Process Redesign Team Structure And Responsibilities
Each Business Process Redesign initiative team must be comprised of stakeholders and subject matter experts.
Business Process Redesign Team
BPR Team Within Program Structure
Proposed BPR Team Members, Description And Roles
Members(1)
Executive Sponsor
BPR Leader
Oversee BPR initiative
Raise issues to Task Force
Report team’s progress to the
Task Force
BPR Members
Detail current state
Capture vision
Design desired end state
Conduct gap analysis
Program Task Force
OA
Team
SMEs
BPR Leader
BPR Members
Notes:
•©Amit Mitra
Roles
(1) Number of members depends on the scope of the initiative
Determine projects to bridge
the gap
Implement approved projects
Contents
• 1. Business Process Engineering at RCI
• 2. Business Process Engineering - Basics
• 3. Why Redesign – Building a Case for Change
• 4. Framework
• 4.1 Phase I “PLAN/DOCUMENT(As Is)”
• 4.2 Phase II “DESIGN”
• 4.3 Phase III “IMPLEMENT”
• 4.4 Phase IV “EVALUATE”
• 4.5 BPR Team
• 4.6 Appendix
Sample Deliverables
Examples-Work products
•©Amit Mitra
Work Plan - Sample
June 24
June 24,25
June 26,27
July 1,2
Kickoff
Workshop
Interview-Indianapolis
Interview-Andover
Interview-Orlando
I/T Assess / Enablers
SFA Customer View
‘”AS IS” deliverable
July 8,9,10
July 15
July 19
July 19
BPR effort
Document
Current Reality
Identify
Entry Points
Quick Hits
Measurements
Design
SFA Processes
Implement
Review / decision
Configure
Measurements
Post Implement
Post Impl. Review
Continuous Improvement
Implement
June July
24
•©Amit Mitra
1
Continuous Improvement
Sep
Aug
8
15 22
29
5
12
19
26 2
On going
Process Performance assessment
Performance Assessment Criteria – Typical
1.
Customer Satisfaction
2.
Cycle Time
3.
Complaints/Rework
4.
Decision Making
5.
Human Resource Utilization
6.
Cost
7.
8.
•©Amit Mitra
Application of performance criteria
1.
Apply performance criteria for each
step
2.
Establish aggregate performance
rating
Information effectiveness
3.
Apply business Goal linkage
Process Management
4.
Establish Goal linkage to process
5.
Compute process priority Index
6.
Create process opportunity map
Business Goal Linkage - example
•©Amit Mitra
Process Importance Analysis
Assessment Criteria
Financial impact
Big absolute cost reduction in process,
Financi
al
Custom
er
Big cost reduction opportunity
Internal
Innovatio
n
Impact
Impact
Major revenue enhancement opportunity
Impact
&Learnin
g
A
Customer impact
Strong linkage to customer satisfaction
B
Potential advantage over competitors
Preemptive strike
C
Internal impact
S
Support strategy
Support vision, Support mission
Strategic alignment
Innovation and Learning Perspective
•©Amit Mitra
Big problem
Small problem
Strong linkage to knowledge management
No problem
Impact on innovation
Performing Well
Etc
.
Process Performance Evaluation
PROCESS PERFORMANCE IS EVALUATED USING A STANDARDIZED SCHEME
Proce
ss
Cycle
Time
Cos
t
Qualit
y
Flexibi
lity
Human
Resour
ce
Utilities
Safety
Etc.
A
B
C
N
Big problem
Small problem
•Cycle time Safety
No problem
•Cost
Decision making
•Quality
Hands-offs
•Flexibility
Information effectiveness
•Human utilization
Customer satisfaction
Performing Well
•©Amit Mitra
Assessment Criteria
High Leverage Processes: High Importance and Low Current Performance
I
m
P
O
R
T
A
N
C
E
40
C
35
B
A
30
E
25
D
B
20
10
15
20
25
30
Performance
•©Amit Mitra
35
40
45
50
Example – ERP system
•©Amit Mitra
Definitions
•©Amit Mitra
Activity Analysis
•©Amit Mitra
Activity Analysis and performance measurement
Subprocesses,
Activities and steps
document the system.
Activity data collected
is used to create
performance
measurements.
•©Amit Mitra
Activity Accounting
ANALYZE AND DOCUMENT FINDINGS IN DIFFERENT WAYS DEPENDING
ON THE SCOPE OF THE PROJECT
PROCESS DESCRIPTION DATA
PROCESS FLOW MAPS
PROCESS STRUCTURE CHARTS
ORGANIZATIONAL FLOWS
PROBLEM ROOT CAUSE ANALYSIS
VOLUME, TIME, COST AND QUANTITY
TIME, COST AND QUALITY
INFORMATION FLOWS
PERSONNEL IMPACT
BEHAVIOURAL RULES
•©Amit Mitra
SWOT analysis
1.
1.
1.
1.
1.
1.
S W
1.
1.
Evaluate Strengths, Weaknesses, Opportunities and Threats
1.
1.
O T
1.
1.
Findings
•©Amit Mitra
S
W
O
T
Straw Model - Processes
•©Amit Mitra
“WE MUST CHANGE OUR WORLD ...
THE WAY WE THINK AND ACT, BEFORE WE CAN
CHANGE THE BUSINESS WE WORK FOR”
- John Zachman
•©Amit Mitra